… remittances fell to N559.42bn in Q1 2026
By Sam Otuonye
The National Pension Commission (PenCom) has said it will not meet its Personal Pension Plan (PPP) target of 30% funded accounts by Q4 2026 as a result of persistent funding gap and weak savings culture, even as Contributory Pension Scheme (CPS) declined by 38% in the first quarter of 2026 to hit N599.42bn in Q1.
According to the latest Nigerian Pension Industry Quarterly Report, only 18,811 of the 219,316 PPP accounts registered under the scheme have received contributions, translating to a funding ratio of just 8.5%.
The development means that more than nine out of every 10 PPP accounts remain inactive despite growing enrollment numbers.
PenCom acknowledged that the industry has focused more on account registrations than actual savings mobilisation, warning that the current trend threatens the scheme’s long-term objectives.
“Of the 219,316 accounts registered under the PPP, only 18,811 are funded. The industry has spent a full year measuring inclusion in registrations rather than savings, and the pattern is now entrenched.
“Absent a decisive change in operator conduct and product design, the Q4 2026 funded ratio target of 30% will not be achieved.”
The Commission stressed that future assessments of pension inclusion should be based on funded accounts rather than registration figures alone, noting that funding gap remains a major challenge.
The report showed that 91% of PPP accounts remain unfunded, highlighting a significant disconnect between enrollment and active participation.
According to PenCom, total quarterly contributions under the PPP stood at N147.16 million, while cumulative inflows since the scheme’s inception have reached N1.66 billion.
The Commission noted that the true measure of success for the scheme will be the proportion of contributors actively saving rather than the number of accounts opened.
It added that to reset the PPP playbook, the Commission will publish funding-conversion targets at PFO level, activate the Accredited Pension Agent network at scale, and deepen distribution partnerships with cooperatives, fintechs, telecommunications operators, trade unions and professional associations to move the informal sector from registration to sustained contribution.
Among Pension Fund Administrators (PFAs), the top five operators accounted for 54.41% of new Retirement Savings Account (RSA) registrations in the first quarter of 2026, down from 62.11% in the previous quarter.
Stanbic IBTC Pension Managers led the industry with 25,024 new RSA registrations, representing 17.47% of the total.
Other leading operators included:
*AccessARM Pensions – 10.63%
*FCMB Pensions – 10.15%
*TangerineAPT Pensions – 9.65%
*Trustfund Pensions – 6.73%
PenCom noted that TangerineAPT’s emergence among the top five operators signals increasing competition within the sector.
RSA registrations continue to grow
Despite concerns over PPP funding, overall RSA enrollment maintained a strong growth trajectory.
Cumulative RSA registrations increased from 11.04 million at the end of Q4 2025 to 11.18 million by the end of Q1 2026, driven by 143,248 new accounts opened during the quarter.
The figure exceeded the 114,864 accounts opened in the previous quarter, reflecting improvements in digital onboarding and sustained public awareness campaigns.
PenCom estimated that active pension contributors currently represent about 12.1% of Nigeria’s 92 million labour force, leaving significant growth opportunities, particularly within the informal sector.
The report revealed that 75.31% of all new RSAs opened during the quarter belonged to Nigerians below the age of 40, signifying that young Nigerians drive pension growth.
PenCom described the youthful contributor base as one of the pension industry’s greatest strengths.
“This remains the single most important long-term asset of the system: a young, expanding contributor base whose retirement horizon extends beyond 2055.”
The Commission argued that the demographic profile supports a stronger allocation to growth-oriented investments rather than the current heavy concentration in Federal Government securities.
The report also showed that 15 Personal Pension Contributors accessed N11.12 million through the contingent withdrawal window during the quarter.
The latest findings come after PenCom reported that 92% of PPP accounts were unfunded in the fourth quarter of 2025, indicating only marginal improvement in account funding levels.
During that quarter, AccessARM Pensions led PPP registrations with 52.53% of cumulative accounts, though only 16.36% of legacy RSAs were recaptured, indicating uneven progress across operators.
However, the report showed that total Q4 2025 pension contributions reached N903.7 billion, with the private sector contributing N352.74 billion during the same period.
Public sector pension remittances rose sharply by 234.85%, reaching N550.96 billion in the fourth quarter of 2025.
The surge reflected both improved compliance and the settlement of outstanding arrears across public sector organizations.
Pension contributions under Nigeria’s Contributory Pension Scheme (CPS) declined by 38% in the first quarter of 2026, according to data released by the National Pension Commission (PenCom).
The latest Nigerian Pension Industry Quarterly Report showed that total pension contributions fell to N559.4 billion in Q1 2026, compared with N903.7 billion recorded in the fourth quarter of 2025.
The decline comes after an exceptionally strong final quarter in 2025 and reflects a slowdown in pension remittances during the first three months of the year.
However, the Commission described the level of contributions as healthy despite the sharp quarter-on-quarter drop.
According to PenCom data, the public sector contributed 50.9% of total pension remittances during the quarter, while the private sector accounted for the remaining 49.1%.
“The pension industry opened 2026 on the front foot. Net assets crossed N29 trillion, contributions of N559.42 billion were healthy in the wake of an exceptional Q4, and benefit administration continued to discharge every category of claim on time.”
